Quantsourcing - Managing the Polarity of Risk Management

Let me start with the dilemma of enterprise risk management. Is it a cost for securing business or a strategic asset? Shall it be centralized or autonomous? Shall it be system driven or business driven?

Managing Polarity

This are the poles of the dilemma of (enterprise-wide) risk management: predictability vs adaptability, control vs agility on the positive side and bureaucracy vs lack of control on the negative side. Organizations tend to oscillate between poles.

The shock of the crisis has given the pole of cost, centralization and system magnetic power. Regulators want tightly coupled systems.

But what about optimizing risk?

Managing polarity is listening to supporters and detractors of the poles and view the positives and negatives of each pole, create awareness of them and try to avoid the negatives. Optimizing risk needs learning from turbulences, adaptability and agility.

Make or buy? One size fits all? Is it enough to being good in not being bad?

Quants would usually have an important role in understanding the the right oscillation trajectory through a pole map (oscillation is inevitable - antifragility needs fragility).


Let me jump to the roles. When we say to a (large) group: everybody-does-this, than it is easy to let someone else do it. Everybody doesn't make things, they may use things.

It's a bit like with crowdsourcing and crowdfunding. Crowds don't make things. It's people, who make things.

Ann, Paul, .. make it. Individual quants make things that diffuse into valuation and risk management - it's Annsourcing and Paulfunding. One person, one contribution, urgent, necessary and indispensable.

Our quantsourcing promise is two-sided - because we believe in quant-powered innovation, we offer quant work for small market participants who do not have quant teams and we serve quants with our technologies enabling them doing things better and swifter.

Expanded Curation

The consequence of unleashing the programming power behind UnRisk, is transparency,. We deliver know-how packages, not black boxes. To optimize the knowledge transfer we always look for new formats. Hybrid learning arrangements between lectures and live presentations. Events that bridge science and usage.

A crowd of quants is not a crowd, but rather a number of individuals gathered in a space, not listening, like in an opera, but interacting.

We want to perfect such formats and try new ways, like this one. In response we hope quants will embed the event experiences into their products and services.

We want quants understanding their role in managing the polarization. Modern risk management needs innovators, not only administrators of black boxes.